Builder

Navigate sole trader taxes and GST for Australian builders.

Allowable Expenses

• Site Equipment — Ladders, scaffolding, and generators used on-site.
• Insurance — Public liability and builders' warranty insurance.
• Subcontractor Payments — Amounts paid to other tradies for work on your projects.
• Project Software — Project management and estimating software subscriptions.

Tax Tips

• Payments to subcontractors must be reported via the TPAR (Taxable Payments Annual Report).
• Ensure you are registered for GST if your turnover is over $75k.
• Capital works deductions may apply for office or storage improvements.
• Submit your Taxable Payments Annual Report (TPAR) to the ATO by 28 August each year for every contractor you paid — missing this deadline attracts escalating penalties.

Frequently Asked Questions

What is TPAR?

The Taxable Payments Annual Report tracks payments made to contractors in the building and construction industry.

Can I claim for project management software?

Yes, subscriptions for business software are fully deductible.

When must I charge GST on progress payments?

If you are registered for GST (mandatory above $75,000 turnover), you must charge GST on every taxable progress payment. Include GST in your contract pricing or ensure your invoices clearly show the GST component. Report and pay collected GST via your quarterly or monthly BAS.

Can I claim a home office deduction for quoting and admin work?

Yes. If you do business administration, quoting, and bookkeeping from home, you can claim a proportion of home running costs using the ATO's fixed rate method (67 cents per hour worked from home) or the actual cost method. Keep a record of hours worked from home.